Fitch Rates DaimlerChrysler Auto Trust 2006-D 'F1+/AAA/A+'

NEW YORK--Fitch rates DaimlerChrysler Auto Trust (DCAT) 2006-D as follows:

--$336,000,000 5.32938% class A-1 asset-backed notes 'F1+';

--$477,000,000 5.19% class A-2 asset-backed notes 'AAA';

--$467,000,000 4.98% class A-3 asset-backed notes 'AAA';

--$209,900,000 4.94% class A-4 asset-backed notes 'AAA';

--$46,100,000 5.01% class B asset-backed notes 'A+'.

The securities are backed by a pool of retail installment sales contracts secured by new and used automobiles and light-duty trucks originated by DaimlerChrysler Financial Services Americas LLC (DCFS). As in previous transactions, 2006-D incorporates a yield supplement overcollateralization account (YSOA), which effectively creates synthetic yield by boosting the weighted average (WA) APR of the collateral pool from 6.69% to approximately 9.44%.

The class A notes are initially supported by 5% credit enhancement consisting of the 3% class B notes, 1.75% overcollateralization (OC) and a 0.25% fully funded non-declining reserve account. Enhancement is expected to grow through the application of excess spread to fund the OC to the maximum of a target level of 5% of the current balance and the floor level of 1.25% of the initial pool balance, minus the YSOA.

The credit quality of the obligors backing the 2006-D transaction is one of the highest, as measured by DCFS' proprietary credit-grading matrix and obligor FICO scoring (713), as compared with recent DCAT transactions. As of the cutoff date, the receivables had a new/used composition of 89.3% and 10.7%, respectively. The WA original maturity of the pool was 64.4 months with a WA remaining term of 53.7 months, resulting in approximately 10.7 months of WA collateral seasoning. The pool is well diversified geographically, with the largest state concentrations in Texas (12.1%), California (9.7%), and Florida (6.6%). No other state accounts for more than 5% of the pool. Geographic diversification helps insulate the transaction against regional economic downturns.

As of Sept. 30, 2006, DCFS' U.S. retail portfolio had an average portfolio outstanding of approximately 2.35 million loans, totaling $38.26 billion, down from $43.9 a year earlier. Total delinquencies were 1.62% at Sept. 30, 2006, climbing from 1.49% at Sept. 30, 2005. Net losses were 1% of the average portfolio outstanding through the third quarter of 2006, up from 0.93% at the same period in 2005, but unchanged from year-end 2005.

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